Question
Consider KRKās demand function for cigarettes forĀ as
Q= .02m- 2p where m is his income and p is the price. KRKās income is Rs.7500 and the price of a cigarette is Rs.30. Suppose government decides to increase the price of cigarettes to Rs.40, the change in total demand, income effect and substitution effect for KRK isĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā ĀSolution
Ā 
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